TSX Venture Symbol: GWG
CUSIP: 39141Y 10 3
SASKATOON, Sept. 18, 2012 /PRNewswire/ - Great Western Minerals Group Ltd. ("GWMG" or the "Company", TSX:V - GWG) is pleased to announce updated drill results for the Company's Steenkampskraal rare earth Project in South Africa.
- Assays varying from 0.02 to 45.81 weight percent ("wt.%") Total Rare Earth Oxides ("TREO") with an average of 17.74 wt.% TREO from underground channel, resource drill hole and exploration drill hole assays.
- Within the drill program being reported, covering 83 drill holes, true thickness varied from 0.02 metres to 6.67 metres and averaged 0.92 metres.
GWMG President and Chief Executive Officer Jim Engdahl said, "Steenkampskraal continues to yield outstanding results with new mineralization, assay results that continue to be exceptional and massive continuity of the vein system. The consistency of high grade assays that we have now reported in three separate news releases further strengthens our already high level of confidence in the potential for a very robust project at Steenkampskraal."
Detailed tables and a map are located on the GWMG website at www.gwmg.ca/gwmg-nr-18-sep-12.html.
The area targeted by Underground Channel Sampling is the historic mine area as is referred to as the "Main Mineralization Zone". Assays reported for core and channel samples in this disclosure are weighted-average composites by interval length across each mineralized intercept (consisting predominantly of the mineral monazite) whether in drill core or in an underground channel.
Highlights of Underground Channel Sampling (Table 1):
- Assay results vary from 3.61 to 45.12 wt.% TREO.
- Weighted average for all channel samples is 21.01 wt.% TREO.
Highlights of the Resource Drill Hole program (Table 2):
- Assay results vary from 0.02 to 41.67% wt.% TREO.
- Weighted average of 11.91 wt.% TREO.
Highlights of the Exploration Drill Hole program (Table 3):
- Assay results vary from 0.02 to 45.81% wt.% TREO.
- Weighted average of 13.93 wt.% TREO.
Sample preparation was conducted by SGS South Africa at their facility in Johannesburg and the REE analyses were completed at the SGS Canada Inc. laboratory in Don Mills, Ontario using a sodium peroxide fusion procedure with ICP-MS finish. SGS is accredited to the ISO 9001 standard and operates according to SGS Group standards consistent with ISO 17025 methods at other laboratories. Strict internal quality control procedures were implemented using randomly inserted blanks, duplicates, and certified reference materials (standards).
In reporting on the Steenkampskraal drill program (Table 4), true thickness measurements are based on a visual assessment of the extent of mineralization. The reported "misses" represent either drilling beyond the boundaries of monazite or local areas of non- mineralization within the "pinch and swell" vein system.
Drillhole spacing is along down-dip lines oriented perpendicular to strike on nominal 25 to 50 metre line spacings and 25 collar metre centers. Typically, one of the two drills is targeted on step-out drilling, and one on infill drilling where required.
As understood to date, monazite mineralization in the Western Extension appears to form a westward oriented wedge at depths of less than 80 metres. Mineralization varies up to 3.73 metres true width, similar to the western side of the known main mineralization zone, but is characterized by significant dilution in the form of entrained felsics and quartz. Mineralization pinches out towards surface approximately 100 metres westward from the contiguous main mineralization zone. Postive indications of a possible Southwest down-dip plunge have not yet been tested.
South Eastern Extension:
The South Eastern Extension is contiguous with mineralization of the main mineralization zone along strike of the monazite vein to the West. It appears to be closed down-dip and up-dip. Mineralization extends Southeast for approximately 100 metres from the recently modeled resource area of the main mineralization zone. More infill drilling is required in order to test the vein character proximal to the very thick monazite vein encountered in resource evaluation drillhole STK116 and to equally thick vein intersections encountered towards the bounding Eastern Flats Extension. A 6.7 metre thick monazite vein was recently intersected in the northern part of this block.
Eastern Flats Extension:
The Eastern Flats Extension covers a broad area approximately 125 metres Southeast and East of the main mineralization zone. The significant number of drill holes without intersections of mineralization reflects delineation of an area defined by minimally mineralized structure equivalent to the thinning monazite vein extending East and Southeast from the immediate mine area. Beyond this pinched-out area, a significant new zone of mineralization has been partially defined. Three dipping, north-oriented holes intersected mineralization of 3 to 6.5 metres true thickness on 25 metre drill spacing. However, step-out drilling thus far has shown a diminution of mineralization within 25 metres on three of the four sides with possible continuity as far as 100 metres further East. This thick "lozenge" of mineralization appears similar to locally thicker areas of mineralization within the main mineralization zone. The Eastern Flats is contiguous with mineralization along strike of the monazite vein to the East and West, and is locally open up-dip and down-dip. Continued step-out drilling of this feature continues.
Office Block Extension:
Mineralization of up to 2.24 metres true thickness on 25 metre drill spacing has only local areas of increased dilution. This area is structurally more complex with bifurcation and trifurcation of the vein in splays or multi-fractured zones. The Office Block Extension is located approximately 200 metres East of the thick mineralized zone in the mid-Eastern Flats. It is contiguous with mineralization of the Eastern Flats, and is currently open to the West and down-dip. Step-out drilling continues along strike and down-dip in this area with mineralization open to the East, South, and West.
Drill Program Summary:
The historic main mineralization zone stretches approximately 400 metres along strike and to a depth of approximately 120 metres.
In total, the REE-bearing Monazite vein has now been well delineated over a strike length of 900 meters and down-dip to an average depth of 125 meters. Importantly, mineralization remains open to the east and at depth along most of the trend.
Exploration Drilling Summary Table:
Note: The summary below includes all drilling to date including previously reported holes. (See: GWMG News Release July 3, 2012)
|0.02 - 6.67||0.19 - 3.73||0.05 - 5.11||0.02 - 3.50||0.02 - 6.67|
The analytical results were evaluated by Brent Jellicoe, P.Geo., the Qualified Person responsible for supervising the preparation of the technical portions of this news release, with support by suitably qualified persons from Caracle Creek International Consultants (CCIC) in Johannesburg, South Africa.
Great Western Minerals Group Ltd. is an integrated rare earth processor. Its specialty alloys are used in the battery, magnet and aerospace industries. Produced at the Company's wholly owned subsidiaries Less Common Metals Limited in Birkenhead, U.K. and Great Western Technologies Inc. in Troy, Michigan, these alloys contain aluminum, nickel, cobalt and Rare Earth Elements. As part of the Company's vertical integration strategy, GWMG also holds 100% equity ownership in Rare Earth Extraction Co. Limited, which owns a 74% equity interest in the Steenkampskraal Mine. In addition to an exploration program at Steenkampskraal, GWMG also holds interests in four active rare earth exploration and development properties in North America.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain information set out in this News Release constitutes forward-looking information. Forward-looking statements (often, but not always, identified by the use of words such as "expect", "may", "could", "anticipate" or "will" and similar expressions) may describe expectations, opinions or guidance that are not statements of fact and which may be based upon information provided by third parties. Forward-looking statements are based upon the opinions, expectations and estimates of management of GWMG as at the date the statements are made and are subject to a variety of known and unknown risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Those factors include, but are not limited to, the successful and timely completion of its preliminary economic assessment and its results, the construction, commissioning and operation of the proposed monazite processing facility and separation facility, mine refurbishment activities, reliance on third parties to meet projected timelines, commencement of production at Steenkampskraal, risks related to the receipt of all required approvals including those relating to the commencement of production at the Steenkampskraal mine, delays in obtaining permits, licenses and operating authorities in South Africa and China, environmental matters, water and land use risks, risks associated with the industry in general, commodity prices and exchange rate changes, operational risks associated with exploration, development and production operations, delays or changes in plans, risks associated with the uncertainty of reserve or resource estimates, health and safety risks, uncertainty of estimates and projections of production, costs and expenses, risks that future Steenkampskraal and region exploration results may not meet exploration or corporate objectives, the adequacy of the Company's financial resources and the availability of additional cash from operations or from financing on reasonable terms or at all, political risks inherent in South Africa and China, risks associated with the relationship between GWMG and/or its subsidiaries and communities and governments in South Africa, radioactivity and related issues, dependence on one mineral project, loss of key personnel, the factors discussed in the Company's public disclosure record, and other factors that could cause actions, events or results not to be as anticipated. In light of the risks and uncertainties associated with forward-looking statements, readers are cautioned not to place undue reliance upon forward-looking information. Although GWMG believes that the expectations reflected in the forward-looking statements set out in this press release or incorporated herein by reference are reasonable, it can give no assurance that such expectations will prove to have been correct. Except as required by law, GWMG does not assume any obligation to update forward looking statements as set out in this news release. The forward-looking statements of GWMG contained in this News Release, or incorporated herein by reference, are expressly qualified, in their entirety, by this cautionary statement and the risk factors contained in GWMG's annual information form available at www.sedar.com.
SOURCE Great Western Minerals Group Ltd.